ABSTRACT: Energy Economics blends market analysis and resource allocation with the physical character of major energy carriers. The complexity of this physical and monetary interaction gives rise to many modeling and computation challenges. Brief examples will be presented in the following areas:

1. Dynamic transition paths with (micro and macro) adjustment costs;
2. Computation of the full marginal cost of increasing a particular energy product, that is jointly produced with other energy products, such as increasing the diesel fuel to gasoline ratio from petroleum refining (an automatic differentiation problem?);
3. Gauss-Seidel strategies for solving large, linked energy sector, eco-system, climate, and economy models;
4). Consideration of information feedback in climate economic models to improve current period energy investment decision-making.